everyone, Thank joining us you, quarter you thank call. morning, Cameron. today XXXX Good for and for earnings our second
provide the with capital our developments, details XXXX update our of strategy on developments with second you allocation will you operational performance also partners. you financial full year updated our and call, and guidance. financial our government discuss with I our On I today’s quarter will latest latest discuss
He and our financial capital also the Garfinkle, provide more ongoing turn will our will update increased financial greater year Dave detailed a I CFO, XXXX results full second detail. our in who quarter guidance initiatives. remarks, call on over structure will review my to XXXX our Following
financial prior updated guidance. results X% we quarter, increase expiration of In quarter our $XXX.X our This brief generate November Prisons the in McRae of I Bureau our to with of the spite a of year is a XXXX a at XXXX. compared of quarter. our in will Facility now was final and second Correctional contract Federal revenue the second financial overview previously provide which Prison of million, owned the
year, We of funds to generated compared million levels, EBITDA the in of our which $X.XX which prior $X.XX and $XX.X higher per decline share by million driven normalized or share earnings communicated our conference the The on facility, million McRae or we staffing from demand. second of the operations FFO generated increasing anticipated sale in quarter, quarter’s anticipation $XX.X in and of per XXXX. call, of was quarter or $X.X last
experienced the we a in While second levels compared of cost market, the with improvements that half pre-pandemic elevated operating during quarter, XXXX. in our continuation to employee the develop of trend modest a remained began
the We labor expense tight continues will the as to continue believe operating loosen. trends payroll market
some time reductions However, market, take normalize. we the of to largely condition on of operating the believe labor expense the pace which will will depend
our $X.XX of FFO As or Operations we previously Funds XXXX per a forecasting per $X.XX of updated in year AFFO increases of guidance. the for share full in at Adjusted From midpoint $X.XX These our issued normalized the range and are to to financial guidance, range $X.XX. represent share $X.XX of
pandemic to essentially CDC also individuals of end. that It Enforcement Without our came of the people in Department XX, end. using during a facilities the and custody there also borders quickly has at the granted remove customers, of federal Title ICE. to increase DHS. Title note came authority Customs implemented our at health ability nation’s pandemic in seeking order the restrictions May an the an number issued our or by the by an Immigration same time, Homeland now to has to of one onset since ICE XX, important the is temporary of to XX, occupancy or closed asylum been public Moving a the On COVID-XX to individuals Security,
is within DHS enforcing arresting one country that for have attaining immigration is ICE responsible of laws, illegally. agencies the and the who individuals the entered
detention increase As in experienced expected, lifted. has since Title ICE a capacity significant demand was XX for
experienced occupancy a ICE In nationwide since in of our and XX, the approximately increased XX% fact, facilities. similar has ICE end Title increase we
significant fixed payments the financial clear approved payment a facilities utilization. levels increase certain facilities there increase are federal our other factors factor in near gap the at This our is levels. does levels populations levels results has The been utilization in result historically narrowed in above majority at payment residential or the to are most such by of XX detention as significantly fixed a the under our bed through impact now contracts of Due proportionate Title lifting long-term not funding The until ICE. and has still fixed many of the capacity of Congress. populations impact unclear that the
upcoming While help facilities October for is on need funding overall appropriations have The additional growing our the population of the unknown, X year the appropriations a the for the the still border. outcome there challenges in the forward. appears at significant agency address impact be to is on outcome appreciation process of fiscal process moving for ICE the levels to to our expected beginning southern
The January in have capacity other within signed update on privately United directed so their executive U.S. impacted remained and unchanged the years, facilities. not by detention to country by to President, in and is that on General of marshals directly reliance due Biden around operated Attorney partner, contracts issued criminal Justice, the of our federal the renew XXXX Now the order States for Justice were remains an Department with capacity. contracted detention consistent need prisoner significant The which of Department Marshal for Service. recent the major their Marshals populations
with remaining the have We two contracts Marshalls. only direct
believe with provide the to X,XXX-bed Correctional those a XXXX. Marshals Arizona expiration our Arizona that Central in we would we've have extensions not Complex existing contract as be likely have capacity dates. is we stated, potential to previously challenging contract a Both to of expiration will contract are significant we Florence the replace. until September resolution and One contracts of closer But of in very facilities
to the capacities marshals to mission. public We closely in continue critical met work being with ensure order support safety are their to their
largest we level, challenge state hear state correctional market. the the At remains system’s to labor tight continue that
with bed long-term. since capacity states the which last with increased We address about help handful to the their in had of conversations has the quarter. additional number have had And to of conversations states near- a challenges we’ve
an been on wouldn't to Now has talking publicly. Montana quarter, XXX I serve believe individuals the of State ours, funding of and government current as later position are issue currently it their out we we that place this disclose The growing of reported to to, a be but partner in one We Montana appropriate RFP to currently all are to states needs. highlight expect appropriated recently has will state. we of excellent an
June Central notified it several the scheduled year We our the was government of only We XX. successful for partners. not our on of the state from to with State state intent this expire with contract beds discussions we other outcomes managed Correctional Tennessee recently South contract X,XXX renegotiated when to have already Earlier renew Center. achieved the
we made long facility operations an terms and over for negotiated infrastructure. term, terms the facility in investments once However, the increase again both that viable of successfully per-diem continued contractual in the
the to the We serve Central operations are continue increasing demand the pleased from Tennessee. capacity at to reach Correctional South state this positive Center outcome for bed and of
the with year. and simply X We long-term agreement to of operate effectively we a government Facility, positive for one believe reached with to meets reach Oklahoma renegotiation pleased the that that facility agreement at X,XXX-bed facility’s new were to for lease a also agreement the into of employees of state. new converting this is the effective that to conclusion a one needs best Davis the own facility enter State to we outlook to the operate facility We which also October the the will and which state this we lease our Correctional lease long-term contract a of
through and of work effective expecting a to state Oklahoma management signed operations the have process, the to to We transition under X. contract XX-day current October extension transition the continue
agreed our X,XXX with at of care Idaho Saguaro facility And beds, the finally, State increase we to Arizona. for we individuals the in of Correctional number
up Saguaro to the Over year, XXX the the state of over past Idaho increase recent approximately has the beds facility. to Based beds XXX months. we utilization their expect few next conversations, at utilized on
of estimate million resulting year occur we we with our We’re from they cost these are our increases $XX incremental diem the per government per annual the the to revenue the adjustments government inflationary costs course are incremental affected state budgets diem challenging contracts state management with July in our coinciding recognize which offset overall well. achieving as approximately also experiencing as state which Most X, pleased incurring. of our partners labor market increases, labor fiscal and success partners of and will environment, diem help per state under from
I of of of often occupancy XXXX. of this our income and a also Community wanted vital and of our in in business increased the segment, XX.X% to prior care. quarter note our by mission of Net another residents that component critical in represents reentry XXXX the from operating is part successful the the to a which to as second second is quarter in increased total quarter XX% segment year X.X% our
occupancy in to now there that a have opportunity come lot is Pre-pandemic end. public trends was XX%, health – more expect in lot to to of Community so the continue to closer an this segment We a policies segment, pandemic-related these grow. all still
to that better residential appears successfully help transitioning be again our communities. partners our it reentry programs once choosing into to more However, are use for individuals government prepared of
the and XX increasing. state demands macro XX border. to ICE hampered the improving. southwest Title populations environment months. jail Demand the Oxy during of at have contributed also the and the with appears has Courts caps be the to nationwide to that So operationally in XX% growing on lifting level summarize, increased populations significantly is pandemic, were by increasing last
operations normalize state will courts and are impacted. agencies adjudicated, correctional clearly As be cases
states legislation result them that needing in several or Additionally, recently have could passed services capacity. additional
definitively Finally, for growth to when we us can are look and never struggling for historically of demand. of few notable county the we an discussions while some say have And may jail with not challenges our staff. indicators an future as with avenue leading engages a services, agency had governments, we overcrowding with
versus we were progress XXXX reminder, with leverage with occupancy XX% a operating reducing comments is significant in continued utilization. our cost out high and shareholders. a our to potential with of capital by model our in As earnings today, returning and close overall my and increases XX% occupancy I'll our model fixed discussing financial debt
have XXXX, we to In purchased X.X million Year-to-date, in First, notes shares that the an quarter, senior an repurchased second plan. update maturity. our on of X.XX% which mature price purchase of April scheduled of million are million. our at $XX.X scheduled our next debt is buyback aggregate unsecured we $XX
cash continue our capital X.XXx. to to We opportunities cash on purchase allocation strategy free use market of open reducing our and open rise, we to overall and our to to cash through Should notes X.XXx levels debt market flow of use debt-to-EBITDA net hand transactions free flow purchase in additional elect range transactions. a further and senior reduce bonds could to
We have us the April how years. free next which three we until in of deploy for cash provides flow XXXX, no maturities debt flexibility
the to debt due flows in made over capital our reducing leverage have our $X.X of overall progress We since updated the announcing strong by generates billion overall XXXX. the cash meaningful strategy allocation in summer balance company our reducing
largely restrictions levels shares are now our Oxy we come reduce leverage Understanding an issues even contracts as mathematically common trends and decline stock. leverage that La These Palma recent our expect Arizona we purchasing of to our our have negatively decline, to with quarters We the debt. prioritize flows our facility reducing ongoing impacted transition though and our federal end partners, pandemic-related to of while cash debt which by EBITDA in rate on reversing. has of in short-term slowed the have to been at continue continued
detail Dave, most the factors provide of detailed in call XXXX guidance, quarter. results will Dave? over increase guidance. including our at the in year He behind the change second who more financial I'll discuss the full that look will financial in significant our now the turn a also
